BoB board meet on Feb 9 to consider pref. issue

PTI New Delhi | Updated on February 02, 2018 Published on February 02, 2018

The board of Bank of Baroda will meet on February 9 to decide on the allotment of shares on a preferential basis to the government in lieu of a capital infusion of Rs 5,375 crore.

“The board will consider and approve the issue of equity shares on a preferential basis to the government up to Rs 5,375 crore,” the bank said in a regulatory filing today.

The capital infusion is part of the government’s massive bank recapitalisation plan to the tune of Rs 2.11 lakh crore in the next two years which is aimed at improving public sector banks’ fiscal situation that is mostly hit due to huge amount of bad assets accruals over the years.

As per the recapitalisation plan of Rs 2.11 lakh crore, Rs 80,000 crore is to be raised by floating bonds by lenders.

Finance Minister Arun Jaitley in his Budget speech for 2018-19 had yesterday said that the recapitalised banks will now have a greater ability to support growth.

“This recapitalisation will pave the way for the public sector banks to lend additional credit of Rs 5 lakh crore,” he said.

Stock of Bank of Baroda ended up by 0.49 per cent at Rs 153.05 on the BSE.

Published on February 02, 2018
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